According to the latest report from auction company BCA, the value of secondhand cars is still falling. The company says that the average value of a car passing through its auctions in October was £4743, a £69 reduction on last month, but £743 less than the same period last year.
It’s the fourth month in a row that BCA’s average auction value has been below £5000, and the news makes clear that – in addition to the dramatic decline in new vehicle registrations, buyers are also shying away from used cars.
BCA’s Tony Gannon reckons that the problem is caused by ‘short-termism’ among professional buyers: “the fear is that further price falls will wipe out any possible profit margin.
[Dealers] holding large volumes of retail product have to turn stock quickly and efficiently or face the prospect of inventory depreciating by often substantial amounts as wholesale prices fall, and the price guides try to catch up.”